Nestle mulls future of US confectionery arm

Confectionery, particularly chocolate, is one of Nestle's flagship businesses and has often been the subject of speculation among industry watchers and the investment community. For much of the last decade, talk centred on whether Nestle would look to build its position in confectionery through the acquisition of a company like Switzerland's Lindt & Sprungli but, in recent quarters, the chatter has switched to whether the KitKat maker would look to quit the sector. Nestle's announcement yesterday (15 June) of plans to review the future of its US confectionery business has sparked a debate among analysts covering the world's largest food group. Dean Best reports.

Announcing's Nestle 2016 results today (16 February) newly-installed CEO Mark Schneider revealed growth at the Swiss food giant came in below expectations. All eyes are now on Nestle's direction under Schneider, who joined the business at the start of this year. Will there be a greater focus on margin enhancement? Has Schneider totally abandoned the 'Nestle model' targeting 5-6% organic growth each year? Could large-scale acquisitions or disposals be on the cards? Katy Askew investigates.